U.s. May Veto United Deal For D.c. Slots

United Airlines` hopes of getting the gates and landing-and-takeoff slots used by Eastern Airlines at Washington D.C.`s National Airport were dealt a major setback Thursday by the Justice Department.

The department, which reviews sales of assets between airlines for potential antitrust violations, said it will sue to block the purchase on the grounds that it would violate the Sherman Antitrust Act. The gates and slots at National, which became available when Eastern shut down Jan. 18, should be sold instead to Northwest Airlines, the Justice Department said.

In a bankruptcy court-supervised auction of Eastern`s assets Feb. 5, United outbid Northwest for the five gates and 67 landing-and-takeoff slots. Chicago-based United offered $35.5 million.

The U.S. Bankruptcy Court in New York overseeing the liquidation of Eastern`s assets is to rule on United`s bid for the National slots Friday. United officials would not say whether they would withdraw the bid in light of the Justice Department`s objections.

In a written statement, United`s chairman and president, Stephen M. Wolf, said United`s acquisition of Eastern`s assets at National ``would, we believe, provide the public substantial competitive benefits.``

But Assistant U.S. Atty. Gen. James Rill, head of the Justice Department`s antitrust division, said United`s purchase of the assets at National would make the airline too dominant in the Washington, D.C., market. United is the No. 1 carrier at Dulles International Airport, located about 30 miles west of Washington in Virginia, Rill noted. If it were to acquire Eastern`s assets at National, it would become the second-largest carrier there, controlling about 20 percent of the landing-and-takeoff slots. A sale of Eastern`s National gates and slots to Northwest, on the other hand, would increase competition in the Washington market, Rill said. It also would help Northwest`s efforts to establish a hub in Atlanta to compete with Delta Airlines, the dominant carrier there, he added.

United did receive some good news from the Justice Department earlier this week. The agency Tuesday approved its $54 million offer for three of Eastern`s gates and 21 of its landing-and-takeoff slots at O`Hare

International Airport. The bankruptcy court approved the offer Feb. 8.